Learn how LTL shipping works, its benefits, and best practices for cost-effective freight transportation across Canada and the USA.
Less Than Truckload (LTL) shipping is a cost-effective freight solution for businesses that don’t require a full truckload. By consolidating multiple shipments from different customers into a single truck, LTL reduces costs, minimizes empty space, and offers flexible logistics options—ideal for small to mid-sized businesses across Canada and the USA.
This guide covers:
- How LTL shipping works and its key advantages.
- Best practices for optimizing LTL shipments.
- Compliance considerations for cross-border shipping.
- Tools and strategies to improve efficiency.
Whether you’re shipping raw materials, retail goods, or specialized freight, understanding LTL can help you cut costs while maintaining reliability.
Problem/Context: Why Businesses Need LTL Shipping
Many companies face logistical challenges when shipping smaller freight loads:
- High Costs: Booking a full truckload (FTL) for partial shipments wastes money.
- Inefficient Space Use: Empty truck space increases fuel costs and emissions.
- Limited Flexibility: Infrequent shipments delay deliveries and strain inventory management.
LTL solves these problems by:
✔ Reducing Costs – Pay only for the space you use.
✔ Increasing Sustainability – Fewer trucks on the road lower carbon footprints.
✔ Improving Transit Options – Access to carrier networks across North America.
In Canada, where long distances and remote locations can complicate logistics, LTL is especially valuable for regional and cross-border shipments.
Core Strategy Breakdown
1. How LTL Shipping Works
LTL carriers combine shipments from multiple customers, optimizing routes through a hub-and-spoke model:
- Pickup: Local terminals collect freight.
- Sorting: Shipments are consolidated at regional hubs.
- Linehaul: Freight moves long-distance via full truckloads.
- Final Delivery: Local terminals dispatch shipments to recipients.
Key Factors in LTL Pricing (Canada & USA):
- Freight Class (NMFC in USA, NMFTA in Canada) – Based on weight, density, and liability.
- Distance – Longer hauls cost more.
- Accessorials – Liftgate, inside delivery, or residential fees.
Canadian Compliance Note:
- Weights & Dimensions: Follow National Safety Code (NSC) for legal load limits.
- Border Crossings: Ensure proper customs documentation (e.g., ACE eManifest for USA-bound freight).
2. Key Benefits of LTL Shipping
✅ Cost Efficiency – Ideal for shipments between 150 lbs – 15,000 lbs.
✅ Greater Flexibility – More frequent departures than FTL.
✅ Enhanced Tracking – Advanced visibility tools for real-time updates.
✅ Reduced Carbon Footprint – Fewer trucks = lower emissions (aligned with Canada’s 2030 Emissions Reduction Plan).
3. LTL vs. Other Shipping Methods
| Method | Best For | Drawbacks |
|---|---|---|
| LTL | 1-6 pallets | Longer transit (multiple stops) |
| FTL | 10+ pallets | Expensive for small loads |
| Parcel | Small boxes | Limited weight/size capacity |
| Intermodal | Long-haul bulk | Less flexible for last-mile |
4. Optimizing LTL Shipments
✔ Accurate Freight Class – Misclassification leads to reweigh fees.
✔ Proper Packaging – Use pallets, shrink wrap, and edge protectors.
✔ Dock Readiness – Avoid delays with scheduled pickup/drop-off times.
Canadian Regulation Tip:
- Hazardous Materials: Must follow Transport Canada’s TDG Regulations for labeling and handling.
5. Technology in LTL Shipping
- Real-Time Tracking – GPS and ELD (Electronic Logging Devices) improve transparency.
- Automated Freight Quotes – AI-driven tools streamline pricing.
- Blockchain for Billing – Reduces disputes with immutable records.
FAQs
Q: How is freight class calculated in Canada?
A: Similar to the U.S. (NMFC standards), but carriers may adjust for domestic factors.
Q: Do LTL carriers service remote Canadian areas?
A: Yes, but transit times may be longer (e.g., Northern Ontario, Yukon).
Q: What’s the average LTL transit time from Toronto to Chicago?
A: ~3-5 days, depending on customs and carrier schedules.
ShipNorthAmerica’s network of trusted LTL providers ensures reliable, cost-effective shipping across Canada and the U.S. Get a quote today or explore our LTL solutions.